India Refers Mahan Coal Block Allocation to Minister’s Panel

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India has referred the allocation of Mahan coal block in central India to a panel of ministers pending ecological clearance, a move that may raise costs for Hindalco Industries Ltd.’s planned smelter in the region.

Environment Minister Jairam Ramesh recommended an alternative coal block be given for two power plants by Hindalco and Essar Power Ltd., according to a notice on the ministry’s website. The ministry has identified Sohagpur coal block in Shahdol district of Madhya Pradesh state as an alternative, it said.